I’ve read dozens of articles regarding energy management and manufacturing, many of them focus on the dark-side of energy. “The sky is falling,” or as the columnists put it “the sky is turning gray and is diminishing because of your carbon emissions;” and in the same articles, “energy utility costs are volatile and rising, and are going to put you out of business.”

I’m not writing today to discuss the validity of climate change or rising energy cost, or to put you into a panic regarding your energy management program or lack thereof. But just so it’s out on the table: Greenhouse gas emissions, sustainability and rising energy costs are key topics for manufacturing. There; said it; done.

Since the US gets 40% of its energy from coal generated power plants, the EPA plan and subsequent Supreme Court ruling suggests we’re all going to feel the impact – in our own pockets and on our corporate income statements.

What’s keeping your company from getting started with a real energy management program? I’m not talking about the kind that simply improves your public image, but one that truly helps you reduce your energy consumption, reduce the cost of the resources purchased, and reduce your carbon footprint.

Manufacturers have been facing pressures to improve profitability since the dawn of production. What’s changed over the years, though, are the ways in which organizations are relieving these pressures. While methodologies like Lean Manufacturing and Six Sigma have held a place in the cost-cutting equation for quite some time, recently organizations have been allocating more and more focus toward Industrial Energy Management (IEM) programs.

IEM has really changed the game for manufacturers. In the past, energy was considered more of a sunk cost than one directly relatable to a particular product or process, however, advancements to IEM strategies and technologies have transformed the way companies are viewing and improving energy consumption. And Energy Intensity, a measurement of the energy required to produce a unit of product, is an excellent benchmark for showing IEM’s effectiveness.

Today, Entegreat is very proud to announce that enCONTEXTTM, our cloud-based Energy and Water Management solution for Manufacturing has earned Top Product of the Year honors from Environmental Leader. enCONTEXTTM is considered by judges as an exemplary product.

“America's energy boom will continue for decades, and natural gas will replace coal as the largest source of U.S. electricity by 2035, the Department of Energy forecast today. U.S. production of crude oil will increase through 2016, when it will approach the record set in 1970, before leveling off and then slowly declining after 2020. Natural gas production will grow steadily, jumping 56% from 2012 to 2040, according to an early release of an annual report by DOE's Energy Information Administration.” [USA Today, December 16, 2013. “U.S. forecasts natural gas boom through 2040”]

It wasn’t too long ago when the U.S. energy dependence fueled projections of a steady increase in energy prices. As had happened previously in Europe, this drove U.S. companies and individuals to a new level of sensitivity towards the potential financial impacts of resource usage and efficiency. In addition, there was an acceleration of focus on responsible consumption based on sheer global scarcity, and the environmental impact of green-house gases and carbon footprints. Sustainability became a hot topic.

How mature is your company when it comes to energy management? Is it something you’ve ever considered? If you haven’t, you’re not alone.

The path to energy maturity often begins with little or no knowledge of energy consumption, conservation or sustainability. Less energy mature companies may consider the extent of conservation to be replacing incandescent bulbs with energy efficient CFLs, adjusting the thermostat and turning off lights and equipment when not in use.

For the leaders in energy management, energy efficiency is a way of life, a key element of corporate identity and valued as a significant competitive advantage.

Have you seen the headlines about the severe drought the western half of the US is having?

Don’t assume these water shortages won’t impact your business. Do you realize it’s not only the west, but populations all across the country who are being impacted by the water supply?

Several cities, including some you wouldn’t expect such as Cleveland, Atlanta, and Washington D.C. are predicted to experience severe water shortages in the not too distant future according to studies from Columbia University Water Center and NOAA's Cooperative Institute for Research in Environmental Sciences (CIRES).

It’s not just agriculture and the fishing and gaming industry that’s being impacted. According to an article by Bettina Boxall in the LA Times (1/31/2014), “for the first time ever, the State Water Project that helps supply a majority of Californians may be unable to make any deliveries except to maintain public health and safety.”

Subscriptions or Purchase

As the market is rapidly getting more comfortable with cloud-based offerings and software-as-a-service (SaaS) solutions, there is usually a secondary hurdle that most customer’s struggle with, and that is the subscription payment method that generally goes along with these offerings. Some just don’t understand it and think it is a clever “trick” of the provider – and others hold the belief that they are inherently more expensive. Neither is true.

While some people have an emotional connection to upfront payment, objection to subscription based offerings is usually not founded on an objective understanding nor an analysis of risk, total costs and flexibility.

To put some real world feel to the levels of energy maturity, let’s take a look at three scenarios that will illustrate two vastly different maturity levels when addressing energy usage and conservation in manufacturing. These are extremes; most companies lie somewhere in between.

Consider which version of maturity your company more closely resembles in each of the following scenarios:

About this blog

Entegreat can help you transform your manufacturing data into something that makes a difference. We believe in Practical Sustainability: you can optimize today’s production performance without sacrificing tomorrow's resources. Follow us on our blog and see what else we believe in, and be sure to share your feedback with us.

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About Entegreat

Founded in 2000, Entegreat has 15 years of delivering operational excellence and energy & water management to manufacturing customers from Fortune 100 through mid-market organizations with our Consulting and Integration Services & Specialized Applications.